MP govt makes major changes under new liquor policy, effective from April 1 |

The consumption of spirits will be strictly prohibited in such bars, government notification read. Currently, 460 to 470 liquor-cum-beer bars exist across MP. The number of bars will shoot up with these new outlets, an excise department official told PTI.

What does the new policy mean for MP's alcohol shops? 

With the implementation of the "Low Alcoholic Beverage Bars", 47 composite alcohol shops will shut down under the liquor sale ban in 19 places, including 17 holy cities, starting April 1, the government statement said. A composite shop comprises an Indian Made Foreign Liquor and a country liquor outlet.

Some of the holy cities where the liquor sale ban will kick in are Ujjain, Omkareshwar, Maheshwar, Mandleshwar, Orchha, Maihar, Chitrakoot, Datia, Amarkantak and Salkanpur.

Chief Minister Mohan Yadav announced the liquor sale ban on January 23 after the new excise policy was cleared. The move will cause the state government to lose about Rs 450 crore in excise revenue.

However, no penalty will be imposed for fetching booze from outside and drinking it individually in such areas as prohibition law is not in force in Madhya Pradesh, officials explained.

Liquor shop renewal fees hiked by 20 per cent

To prohibit carrying and consuming liquor where outlets will be closed, a law akin to the Bihar Prohibition Act 2016 is needed. Besides Bihar, Gujarat has a prohibition law in place, officials said, adding that MP has only the Excise Act in force.

“In a purely legal sense, it restricts the points of sale and consumption in terms of sitting in bars, etc. There is no individual restriction. People can possess liquor and consume it individually, not collectively,” an official said.

The government statement said that under the new excise policy for the next fiscal, liquor shop renewal fees have been hiked by 20 per cent.

However, the Heritage Liquor and Wine Production Policy will remain unchanged. Heritage liquor manufacturers will continue to be exempt from Value Added Tax (VAT).

Wine production will be allowed from grapes, jamun and other fruits

Under the state's Grape Processing Policy, fruit processing and horticulture expansion will be promoted to increase farmers' income. In addition to grapes and jamun, wine production will be allowed from other fruits and honey produced and collected in Madhya Pradesh.

Wine production units in the state will be allowed to operate retail outlets on their premises. A wine tavern (wine-tasting facility) will be permitted for tourists at wineries.

Foreign liquor bottling units will be permitted to manufacture, store, export, import, and sell special liquors from the next fiscal.

According to an estimate, 3,600 composite liquor shops across MP will bring in an estimated revenue of around Rs 15,200 crore this fiscal.